2013 ORS § 316.778¹
Small city business development exemption
  • rules

(1) For each tax year in which a business firm receives an annual certification under ORS 285C.506 (Annual certification of facility), the income of the taxpayer apportionable to the certified facility of the business firm shall be exempt from tax under this chapter.

(2) The income of a resident taxpayer that is exempt under this section shall be determined by:

(a) Multiplying the federal taxable income of the taxpayer by the ratio of the taxpayers federal adjusted gross income derived from the business firm over the taxpayers federal adjusted gross income; and

(b) Multiplying the amount determined under paragraph (a) of this subsection by the ratio of the business firms income derived from the firms activities at the certified facility over the business firms income from all business activities.

(3) The income of a nonresident or part-year resident taxpayer that is exempt under this section shall be determined by:

(a) Multiplying the Oregon-sourced federal taxable income of the taxpayer by the ratio of the taxpayers federal adjusted gross income derived from the business firm over the taxpayers federal adjusted gross income; and

(b) Multiplying the amount determined under paragraph (a) of this subsection by the ratio of the business firms income derived from the firms activities at the certified facility over the business firms income from all business activities.

(4) The Department of Revenue shall by rule prescribe a method by which a business firm determines the extent to which the firms income is derived from the firms activities at the certified facility.

(5)(a) A partnership or S corporation shall report the information necessary to compute exempt income under this section to the firms owners within 30 days following the issuance of the annual certification to the partnership or S corporation under ORS 285C.506 (Annual certification of facility).

(b) The department may permit extensions of time for reporting the information required under this subsection.

(6) As used in this section:

(a) Business firm has the meaning given that term in ORS 285C.500 (Definitions for ORS 285C.500 to 285C.506).

(b) Certified facility means a facility, as defined in ORS 285C.500 (Definitions for ORS 285C.500 to 285C.506), for which an annual certification under ORS 285C.506 (Annual certification of facility) has been issued. [2001 c.944 §6]